![]() And companies need to invest most of their profits in expanding their output, if they hope to survive. That excess is called profits or the amount of capital above and beyond operating expenses, including wages and salaries. ![]() That is why the capitalist system was created. Because the whole system is built upon creating enough excess to invest in order to expand future growth. His research is also about how future generations might share in that wealth, and hence what capitalism must look like in future centuries, if it is to survive.įor it has to be no surprise that capital growth must exceed economic growth, and so earnings, for a country to be able to feed all its citizens. ![]() ![]() Thomas Piketty's Capital in the 21st Century is about more than proving that wealth inequality built up over centuries under so-called free market capitalism, or its social democratic versions in Europe, has to be its natural state. ![]()
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